If you’re looking to build a rental investment portfolio – talk to someone who has done just that.
I’ve successfully bought, sold, and made profit on rental properties for years.
I can help put you on the right track with finding your own rental properties.
Whether you are a regular property investor, buying a house for the kids, or buying your first rental property – crunching the numbers is critical. Structuring the ownership and funding to your advantage is also incredibly important.
Get help from someone who has experience. Let me show you how it’s done.
Hi Marg we are very happy thank you, thanks again for making it possible for us as it wouldn’t of happened without your help ????Another happy client
With the new Reserve bank policy, it now states that you must have 40% deposit/equity to purchase a rental property.
If you already own your own property you can go to 80% on your owner occupied property but only 40% equity on your rental property.
So the more your owner occupied property is worth the more likely it is you can borrow against it to purchase a rental investment property.
Real estate has always been a popular choice in NZ to build wealth.
Situations I often deal with:
Buying a House for the Kids
This is fairly common for families with grown-up children who are leaving home for University or further education.
Often the kids have flat-mates which helps to pay your mortgage, rather than another investor’s rent (and mortgage).
Expatriate New Zealanders
These are Kiwis who want to be a part of the New Zealand property market, while living offshore.
They may be regular property investors who are starting out, or own large portfolios of real estate.
Whether it’s your home, or another property you own, it’s common to access the equity in one property to purchase another.
There are 2 common ways to do this:
Using equity in your own home
This is when you use the equity in your own home to purchase a rental property with a cross collateral loan.
You can only do this if you use the same bank.
This is because they take and use the security over both properties.
This can be a simpler approach as your current lender provides 100% of the cost of buying the rental, and it’s secured by two properties.
However, this method ties the two properties together such that, if you want to sell one (say the rental) then the lender will also need to review your remaining home loans.
This is where you ‘release your equity’ as cash with a loan top up over the property you own to buy a rental property with a stand-alone loan.
This is good if you are going to go to another bank with deposit in hand rather than use a cross collateral loan with your own home at your current bank.
Releasing equity as cash from one property (say your home) to contribute to the purchase of another (your rental) and keeping both properties independent, by using different lenders, has the advantage of separation.
Not sure what’s best for you? Get in touch and I’ll help you decide which path best suits your requirements.